Which of the Following Statements Is Not Correct About Competitive

question 280

Multiple Choice

Which of the following statements is not correct about competitive firms?

• A)In a long-run equilibrium, firms must be operating at their efficient scale.
• B)In the short run, the number of firms in an industry may be fixed.
• C)In the long run, the number of firms can adjust to changing market conditions.
• D)In the short run, firms must be operating at a level of output where price equals average variable cost.